United Airlines CEO: Job cuts if no bailout
United Airlines will introduce job cuts, furloughs and pay reductions to help its liquidity if it doesn’t receive a government bailout amid the coronavirus crisis that has hit airlines heavily, CEO Oscar Munoz and President Scott Kirby said in a letter to staff. They also threatened the bailout would need to pass Congress before the end of March so that the airline would not fire its employees.
The letter stated: “If Congress doesn’t act on sufficient government support by the end of March, our company will begin to take the necessary steps to reduce our payroll in line with the 60% schedule reduction we announced for April. May’s schedule is likely to be cut even further.”
United Airlines stocks recovered slightly as they jumped 17.11% at 3:35 pm ET. but they remain down 72.12% since the start of the year. The airline expects to sell only about 25% of its seats amid coronavirus travel restrictions. Earlier, Senate Republicans suggested $50 billion to help airlines deal with the ongoing crisis.
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